Centre still showing empty hand. AP frustrated and matters are coming to a boil !!

Upset by the Union government’s attitude, the Andhra Pradesh government has again written to the Centre urging it to release funds immediately as assured in the State Re organisation Act on the floor of Parliament. The AP government has been writing a series of letters to the Centre, but so far not a single rupee has been received.

AP finance minister Yanamala Ramakrishnudu had written a letter to Union finance minister Arun Jaitley two days ago requesting him to release funds liberally for AP. Again on Thursday, the AP government sent two separate letters to the Centre one requesting the release of funds for the construction of capital and the other fill the present financial year’s Budget deficit of Rs 15,600 crore.

The AP government expected that the Centre would release some financial package by the end of December.

Recently, Union minister Y.S. Chowdary, IAS officer P.V. Ramesh and others discussed the issue with Union minister Nirmala Sitharaman and Union finance ministry officials. At that time, the state government was promised that after Parliament session, in the last week of December, it will get some financial package.  One week of the New Year is over, yet there is no sign of any fund. Against this background Mr Yanamala wrote a letter to Mr Jaitley saying that the Union government should come to the rescue of residuary state by ensuing release of funds liberally as per its commitment on the floor of the House to overcome difficulties.

Mr Ramakrishnudu said the Centrally-sponsored schemes should not burden the state governments by compulsory  participation. He said that the focus on infrastructure and industry is crucial, as without proper infrastructure, the state will not get investors. “We hope the 14th Finance Commission has addressed our grievances. Even then, unless Fiscal Responsibility and Budget Management (FRBM) relaxations are given for a specific period, it becomes difficult to focus on infrastructure as the revenue accrued to the state will be just sufficient to meet revenue expenditure only.”

Earlier, the AP government had sent the proposals on the capital, estimating the total expenditure roughly Rs 1.13 lakh core. In another letter, it requested sanction of Rs 60,000 crore for the construction of the capital city.

As reported in Deccan Chronicle dated 9/1/2015

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